Biggest Stock Market Crashes in History

A History of U.S. Stock Market Crashes

By Matthew DiLallo – Updated Apr 3, 2025 at 11:10 PM

Key Points

Stock market crashes typically follow debt-fueled booms.
Recovery times vary: Post-1929 took decades, while 2020 saw a swift rebound due to stimulus.
Learning from crashes: they often occur without warning, emphasizing the need for preparedness.

A stock market crash occurs when there is a significant decline in stock prices. There's no specific definition of a stock market crash, but the term usually applies to occasions when the major stock market indexes lose more than 10% of their value very quickly.

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Market crashes typically happen without warning, often on the heels of a long bull market run during which stock prices steadily rise. The hallmark of a stock market crash is panic-selling by investors who attempt to quickly liquidate their positions to either curb their losses or satisfy a margin call.

Although a stock market crash can occur quickly, many of the market's biggest crashes have had effects that were long-lasting and deep. Here's a brief look at some of the stock market's most notable crashes.

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Visual timeline of the biggest crashes in stock market history: 1929, 1987, 1999, 2008, 2020. — Image source: The Motley Fool.

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Bank Run

When a large volume of deposits is withdrawn from a bank in a short period of time.

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Foreclosure sign in front of house. — Image source: Getty Images.

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Chart showing the effect of the coronavirus on the economy — Image source: Getty Images.

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The most recent stock market crash occurred in 2020 as the COVID-19 pandemic spread worldwide. During the week of Feb. 24, the Dow Jones and S&P 500 tumbled 11% and 12%, respectively, marking the biggest weekly declines to occur since the financial crisis of 2008. The Dow would go on to decline by 9.99% on March 12 -- its largest one-day drop since 1987 -- followed by an even deeper plunge of 12.9% on March 16.

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However, unlike with previous crashes -- which took years to recover their previous peaks -- the stock market rebounded quickly, reaching its pre-pandemic peak by May 2020. Fueling the rapid recovery was an enormous amount of stimulus money, with the Federal Reserve slashing interest rates and injecting $1.5 trillion into money markets and Congress passing a $2.2 trillion aid package at the end of March.

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About the Author

Matt DiLallo has been a contributing Motley Fool stock market analyst specializing in covering dividend-paying companies, particularly in the energy and REIT sectors, since 2012. He also covers pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

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Matt DiLallo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.